yes it was all quite interesting..Larry n Mark delivered quite a good overview...although the radio blackout leading upto yr end financials for the next 2 months will only serve to annoy pi's who didn't isten in...be warned in advance.. Don't see the SP budging now for 3-6months from what i heard today....quite a lot of posatives but all into 2015 from what i can percieve...hope i'm wrong....still was good to finally be able to get involved. holding firm for the new yr....
There is no earthly reason why there couldnt be some kind generic news relaese to state what the NEW venture is though. An overview of the opportunity, and it's value adding elements and term for it to mature.
I have listened to the conference call with interest and noted the following ,
1. The placing was primarily required because funds due in from the woodside farm in to Moroccan acreage will not be received till 1q 2015, which left free cashflow tight due to the fact that $12.9 million of cash is held as a cash collateral for the Brazilian work program, I had previously posted that it was due to these guarantees but thought it Namibia and not brazil was the problem. 2. Chariot have identified a substantial opportunity in one of its countries it operates in and it has applied for the acreage and agreed principal terms for the acreage. The country of operation is known to key advisors only and to chariot employees. Obviously. I am neither but I believe I have worked it out based on the information in the conference call and knowledge of chariots areas of operation, I strongly suspect its mauritannia for a number of reasons which I will not discuss, and I think I know where also and believe there is very strong reason for getting this acreage as I think there is huge potential there which will be very well received by shareholders, good move Larry , expect announcement sept or oct. Of course I could be wrong, let's see. 3. the farm out to woodside for rabbat deep includes woodside having an option to increase to 50% and take operatorship and drill a well. Chariot will be carried on the well up to a well cost in excess of $85million, so this will be worth approx 5p per share, and valued by the market at nil. 4. Petrobas and bp to drill 70km north of chariots brazil blocks in q4 , important well to watch. 5. No information on the Namibian central blocks, just that they are going through procedures, hard to interpret as these licences are due for renewal in august. My guess is that they have farmed out but that operatorship will pass to a new party and the farm in has to be approved by the ministry and they cannot talk about it till all is approved.
Conclusion It's never good to try and raise funds at the height of the holiday season when liquidity is low, so this new acreage opportunity must be very compelling. Also Larry stated that there would be new institutional investors, let's hope this will be like when citi invested a few years back and the start of a long bull run for a stock that is massively undervalued.
Chariot To Chariot where on Monday night it was announced that a placing was taking place to raise $15m. I am seeing Larry tomorrow so I will keep my comments reasonably brief this morning. Firstly, I have been a keen buyer of Chariot since I first met Larry and heard the story of ‘New Chariot’, turning me round was not easy, the stock had been a disaster previously but I liked the four country spread and the fact that the company was fully funded with few if any remaining commitments. So when I heard that the company had been on the road for ten days raising money they said they didn’t need, in the process bring the share price down over 20% I was flabbergasted. They probably lost half as much in market cap as they raised, surely they could have done this better. I had an issue with Faroe recently about spending so much time marketing and this is the same. See chart, I rest my case….and I could have shown the 6 month chart which starts at 28p…… Anyway, rant over, the proceeds will pay for ‘acceleration and continued development of the portfolio to maintain strategic advantage and mature assets for drilling’, in Brazil and the other $7.5m will go into a new venture which we don’t know about yet but is in an existing country. So you’ve got a 25% chance of guessing right and when you hear what it is you will be expected to gasp with appreciation. More later but my BUY recommendation which I suspended yesterday remains so, watch this space
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